Once valued at over 200 billion yuan, the former "Northeast pharmaceutical giant" now faces nearly halved net profits. Under the shadow of declining growth hormone benefits, Changchun High-Tech Industry (Group) Co.,Ltd. (000661.SZ)'s Hong Kong listing application serves as both a breakout declaration and a survival guide.

On September 29, 2025, Changchun High-Tech's prospectus appeared on the Hong Kong Exchange's disclosure website, marking this veteran biopharmaceutical company's official launch of its "A+H" dual-platform listing journey. This comes nearly thirty years after Changchun High-Tech's Shenzhen Stock Exchange listing, and today's market environment differs vastly from three decades ago. The company that once dominated the growth hormone market saw its first revenue and net profit decline in nearly twenty years in 2024, with 2025 first-half net profits plummeting 42.85% and market value shrinking by over 160 billion yuan from its 2021 peak.

Regarding the Hong Kong listing, Changchun High-Tech representatives stated it aims to "accelerate global strategy implementation and establish an international cooperation hub." However, behind this grand vision, the company faces the severe challenge of its first revenue and net profit decline in nearly twenty years.

**Performance Decline**

Changchun High-Tech's development history was once a "wealth creation template" for China's biopharmaceutical industry. In 1998, subsidiary GeneScience Pharmaceuticals developed China's first injectable human growth hormone, breaking foreign monopolies. In 2014, the world's first long-acting growth hormone "Jintrolong" launched, establishing an insurmountable technical barrier. During its peak, this product contributed over 80% of company revenue, supporting Changchun High-Tech's market value that once exceeded 220 billion yuan.

However, the myth reached a turning point in 2024. Changchun High-Tech's financial data reveals a harsh reality: the former high-growth myth has shattered. In 2024, operating revenue reached 13.466 billion yuan, down 7.55% year-over-year, while net profit fell to 2.583 billion yuan, plummeting 43.01% year-over-year. This marked the first revenue and net profit decline in nearly twenty years.

This downward trend continued in 2025. In the first half of 2025, Changchun High-Tech's revenue reached 6.602 billion yuan, down 0.54% year-over-year, marking the first decline in a decade's interim reports. Net profit attributable to shareholders fell to 982 million yuan, plummeting 42.85% year-over-year. Notably, second-quarter revenue increased 4.16%, but net profit declined 48.83%, highlighting the "revenue growth without profit growth" dilemma.

Regarding financial metrics, Changchun High-Tech's net profit margin dropped significantly from 32.79% in 2023 to 14.11% in the first half of 2025, nearly halving compared to 27.05% in the same period of 2024. Meanwhile, combined sales and R&D expenses accounted for 53.6% of revenue, severely compressing profit margins.

From a longer-term perspective, Changchun High-Tech's growth deceleration showed early signs. From 2021 to the first half of 2025, revenue growth rates continuously declined from 26.71% to -0.54%, while net profit growth rates plunged from 46.85% to -42.85%. The deterioration speed of net profits far exceeded the revenue side, reflecting structural impacts on profitability.

Behind the profit decline lies the stalling of the "growth engine." The golden era of the growth hormone market is ending: declining birth rates for consecutive years weaken potential demand, while patient visits among the core 4-15 age group show slowing growth. Additionally, volume-based procurement has rolled out across multiple provinces and cities, making the high-margin model unsustainable.

More critically, the monopoly position of long-acting growth hormone has been broken. In May 2025, TechPool Bio-Pharma's similar product received approval, with players like WellSpring Pharma and Novo Nordisk entering the market, gradually eroding the former "moat."

**Business Challenges**

Changchun High-Tech's rise and challenges closely relate to its core product—growth hormone. Subsidiary GeneScience Pharmaceuticals, serving as the company's "cash cow," contributes nearly 80% of Changchun High-Tech's revenue, but its 2024 revenue declined 3.73% with net profit falling 40.67%.

The growth hormone business faces two major challenges: volume-based procurement policies and market competition. In 2022, growth hormone was included in procurement ranges by Guangdong Alliance, Fujian, Hebei and other provinces. GeneScience Pharmaceuticals won bids for powder formulations but withdrew from aqueous formulation bidding. Subsequently, its aqueous formulation won Zhejiang provincial procurement in 2023, with execution beginning in 2024, directly leading to price reductions.

Although the final winning bid price in the 2022 Guangdong Alliance procurement decreased by only 13%, this policy signal triggered industry valuation reconstruction. As procurement scope expands, growth hormone product prices face stricter controls, profoundly impacting the entire industry's profit model.

Regarding market competition, Changchun High-Tech faces unprecedented pressure. Consulting firm data shows GeneScience Pharmaceuticals holds 74% market share in the growth hormone market, with Ankebio and TechPool Bio-Pharma closely following. Currently, short-acting formulations still occupy 65% market share, but long-acting preparations (such as Jintrolong and TransCon hGH) are capturing market share at over 50% annual growth rates.

This trend indicates long-acting growth hormone products are gradually becoming mainstream. With more participants entering, GeneScience Pharmaceuticals' monopoly position in the long-acting aqueous market is being broken, potentially facing "price wars" in the future.

Changchun High-Tech's second growth curve also encountered setbacks. Subsidiary Bcht's revenue in the first half of 2025 reached 285 million yuan, down 53.93% year-over-year, with net losses of 74 million yuan. Its core product, herpes zoster vaccine, generated only 251 million yuan in 2024 revenue, declining dramatically by 71.54% year-over-year.

**High Expenses**

The 2025 interim report shows Changchun High-Tech's combined sales, administrative, and financial expenses totaled 3.101 billion yuan, with "three expenses" accounting for 46.97% of revenue, up 28.5% year-over-year, significantly above the industry average of 35%, reflecting operational inefficiency.

Sales expenses reached 2.386 billion yuan in the first half of 2025, up 23.43% year-over-year. This closely relates to sales team expansion—in 2024, Changchun High-Tech's sales personnel grew from 3,155 to 4,995, adding 1,840 people within one year.

Administrative expenses also grew rapidly, increasing 25.59% year-over-year in 2024. Changchun High-Tech explained this resulted from "GeneScience Pharmaceuticals' new BU management structure adjustments and establishment of related lower-level subsidiaries." However, significantly increasing management personnel during a performance decline period raises questions about cost control capabilities.

R&D investment continued growing, with R&D expenses reaching 1.155 billion yuan in the first half of 2025, up 30.22% year-over-year. The company focuses on advancing ADC and small nucleic acid technology platforms and clinical trials for products like Fuxinqibai monoclonal antibody. However, Changchun High-Tech fully impaired 133 million yuan in capitalized development expenditures, reducing operating profit by 133 million yuan, partly due to terminating the long-acting growth hormone U.S. regulatory application project.

Analysts point out Changchun High-Tech suffers from "management redundancy" issues, with subsidiaries GeneScience Pharmaceuticals and Bcht operating independently, causing administrative overlaps. In comparison, Hengrui Medicine reduced its three-expense ratio to around 32% through "sales team integration + digital marketing," highlighting Changchun High-Tech's efficiency optimization potential.

**From "Single-Wheel" to "Dual-Wheel" Drive**

Long-term dependence on core products like growth hormone has led to growth saturation, with "single-product dependence" risks emerging. Facing this predicament, Changchun High-Tech actively seeks strategic transformation. The company has clearly shifted from "independent R&D single-wheel drive" to "independent R&D + BD (business development) dual-wheel drive."

This transformation is particularly evident in subsidiary GeneScience Pharmaceuticals. In September 2025, GeneScience Pharmaceuticals partnered with Denmark's ALK-Abelló A/S, the world's largest desensitization therapy drug company, to jointly develop and commercialize ALK's desensitization therapy products in China.

Changchun High-Tech CEO Jin Lei stated: "Desensitization-related layout serves as our key leverage for fully developing immunology and respiratory fields, with these two major areas clearly positioned as important future business growth engines."

Internationalization has become a core direction for Changchun High-Tech's strategic transformation. In 2024, GeneScience Pharmaceuticals achieved overseas sales revenue of 99 million yuan, up 454% year-over-year. Despite the small base, this demonstrates the company's determination to expand overseas markets.

Regarding R&D investment, Changchun High-Tech continues increasing input. First-half 2025 R&D investment grew 17.32% year-over-year to 1.335 billion yuan, with R&D investment accounting for 20.21% of operating revenue. The company currently has over 40 clinical pipelines and pipelines with submitted IND applications, with 14 in Phase III clinical trials or NDA stages.

Product diversification also represents a transformation focus. Changchun High-Tech disclosed the weight control brand Saibijian in its financial reports, including intragastric space-occupying foods and sports nutrition products. In oncology business, GeneScience Pharmaceuticals introduced Megestrol Acetate Oral Suspension from the U.S., expanding into cancer anorexia-cachexia fields.

Against this backdrop, Changchun High-Tech's Hong Kong listing carries obvious strategic significance. The prospectus shows IPO fundraising will primarily serve four purposes: innovative pipeline clinical trials, potential global cooperation and co-development, strengthening sales and marketing capabilities, and working capital.

However, Hong Kong listing is not a panacea. Current Hong Kong biotech sector sentiment remains cautious with high IPO failure rates. Although Changchun High-Tech is a leading enterprise, if market conditions remain depressed, H-share issuance valuations might fall below A-shares, potentially facing short-term "AH discount" pressure.

Additionally, Changchun High-Tech's overseas revenue scale remains small, totaling only 130 million yuan in 2024. The company plans to "continuously expand existing export product categories and expand overseas commercial and academic activities," but lacks blockbuster product support.

A pharmaceutical industry analyst noted that the core highlight of Hong Kong listing lies in its scarcity as a "platform-type leader" in China's biopharmaceutical field. From fundamental perspectives, the company's business covers five major segments: genetic engineering, biological vaccines, antibody drugs, high-end chemicals, and modern Chinese medicine, forming a complete industry chain loop of "R&D-production-commercialization."

Throughout global biopharmaceutical industry development history, no company has maintained leadership through single products alone. International pharmaceutical giants like Eli Lilly and Novo Nordisk maintain competitiveness through continuous product iteration and international expansion.

For Changchun High-Tech, Hong Kong listing represents only a new starting point. As growth hormone market benefits fade, the company must prove it can not only develop one good product but also build a sustainable diversified product portfolio. Capital markets will closely monitor Changchun High-Tech's subsequent R&D pipeline realization capabilities and international market expansion progress. After all, in the innovative drug industry, capital market patience may prove more brutal than volume-based procurement price cuts.